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Tax Tidbit 2/07: Federal Telephone Excise Tax Refund 2006 Business Tax Returns

The Federal government has retroactively repealed the excise tax on long-distance telephone bills invoiced from March 2003 through July 2006.  However, in order to receive this money back, your business must file a Form 8913 with your 2006 Federal income tax return.  In order to compute the credit, you must have your April 2006 & September 2006 monthly telephone bills and the total amount of your telephone expense for the 41-month period.  You are entitled to take this credit on your Federal income tax return, even if you have no tax due.  This credit is also available to non-profit organizations and sole proprietorships. 

In addition, most individuals can take a credit ranging from $30 to $60 on their 2006 Form 1040 without having to research their prior monthly telephone bills.  If you have any questions regarding this 2006 tax credit opportunity for your business, please contact Andy Ross, CPA at 908-782-7900, ext. 113 or adr@bkc-cpa.com.